The government has released its long-awaited regulations on the disclosures that financial advisers need to make under the Financial Advisers Act.The regulations provide details on the form and content of disclosure statements which all financial advisers
The government has released its long-awaited regulations on the disclosures that financial advisers need to make under the Financial Advisers Act.
The regulations provide details on the form and content of disclosure statements which all financial advisers will have to provide to customers from 1 July next year, when the Financial Advisers Act and the Financial Service Providers Act will be fully in force.
The Acts require all financial service providers, including financial advisers, to be listed on a public register and, if they provide services to the public, be members of an approved dispute resolution scheme.
Financial advisers will also be subject to a Code of Professional Conduct which establishes 18 standards to ensure they meet the minimum standards for ethical behaviour, client care, knowledge, skills and competence, and continuing professional development.
The disclosure regulations will be available at www.legislation.govt.nz.
Commerce Minister Simon Power said Cabinet had also agreed that further regulations were needed to set:
- Definitions of key products under the Financial Advisers Act.
- Exemptions from the Financial Advisers Act and the Financial Service Providers Act.
- Fees that the Securities Commission may charge for considering exemption requests.
Financial service providers need to be registered and belong to a dispute resolution scheme by December 1.
The Acts come fully into force on 1 July next year and all financial advisers who need authorisation from the Securities Commission must have completed their training and finalised their authorisation by this date.
